CASE: Reengineering the Selling and Billing Processes at Municipal Mutual Insurance Co.
Reengineering Business Processes
Reengineering a business’ processes involves the rethinking or the redesigning of the business functional activities in order to dramatically improve its measures of performance such as cost, tasks, quality, service, flexibility, and processes. Reengineering aims to dramatically simplify the businesses’ factors of performance in the purpose of boosting its efficiency.
Reengineering can target some common features of a business such as the compression of jobs, the empowerment of workers, the reduction of steps within a task, and the reduction of checks and controls. Reengineering a business process includes the identification of the process, the analysis of the process, the redesigning of the process, and the implementation of the new version of the process.
Application to Municipal Mutual Insurance Co
The Municipal Mutual Insurance Co was formed by fourteen small municipalities in the upper New York State. The firm’s objective is to provide a convenient and affordable “full-risk” package of insurance coverage for the fourteen municipalities and other municipalities. The firm experiences a growing number of policies, and has been successful. However, its efficiency has been affected because of the increasing costs in the selling and billing process. The firm’s policy selling and billing process is manual, and includes too many steps. This situation makes the process time and money consuming. As a result, the firm’s costs of office operations increase much rapidly than the premiums, affecting then its efficiency.
Reengineering the Municipal Mutual Insurance’s Policy Selling and Billing Process would be implemented by using the Information Technology System that can help compress jobs, and reduce unnecessary steps within this process. The IT system would enable the firm to realize significant cost and time savings by moving its...